Kerala reiterates request for additional borrowing space

Kerala has reiterated its request for an additional borrowing limit of 0.5% of the Gross State Domestic product (GSDP) during a meeting between Chief Minister Pinarayi Vijayan and Union Finance Minister Nirmala Sitharaman in New Delhi on Thursday.

Kerala Finance Minister K.N. Balagopal also was present on the occasion.

Mr. Balagopal later told reporters that Kerala has urged the Centre to restore ₹3323 crore clipped from its borrowing ceiling in the name of the Guarantee Redemption Fund (GRF), and to allow it an additional borrowing of about ₹6000 crore over the nety borrowing ceiling bearing 25%t of the land acquisition cost for NH development.

Kerala also repeated its request got the restoration of ₹965.16 crore deducted in April 2025 on account of an advance apportionment made by the Centre to make up for a shortfall in the Integrated Goods and Services Tax (IGST) balance.

Mr. Balagopal said the Union Finance Minister has responded positively to the State’s requests.